Roberto Hernández Hernández University of Guadalajara The China's International Cooperation Policy and The Belt and Road Initiative (BRI); A Latin American Perspective Roberto Hernández Hernández   University of Guadalajara

Introduction China's international cooperation is clearly related with its foreign policy and the nation's project of its leaders. It is a way of defining their identity in the international system domain. In recent years China has significantly increased international aid and investment, especially in Asia, Africa and Latin America. Currently the Belt and Road Initiative (BRI) is the backbone of China's international cooperation.

International Cooperation: Key Concepts Definition of the UN: (Article 55 of the OC) ... create the conditions of stability and well-being necessary for peaceful and friendly relations between nations, based on respect for the principle of equal rights and self-determination the villages… ... is a collaborative tool that supports development processes through the transfer of technical and financial resources among various actors of the international system … International Development Cooperation (ICD): Traditional Recent Official Development Assistance (ODA). Coordinates: OECD. In the framework of the UN: Millennium Development Goals (2000-2015). Sustainable Development Objective (2015-2030).

Top 10 Largest Donors of Foreign Aid in the World (ODA) (Billion US$) Rank Country 2012 2015 1 United States 23.53 31.8 2 United Kingdom 12.46 18.7 3 Japan 11.19 9.32 4 France 10.6 9.23 5 Germany 10.44 17.78 6 Netherland 5.45 5.81 7 United Arab Emirates 5.2 4.39 8 Sweden 3.95 7.09 9 Canada 3.9 2.29 10 Spain 3.81 1.6 Sources OECD: official development assistance (ODA)

China’s Perspective China participate in the schemes described above... but also: It defines its own scheme of International “Cooperation”; called, foreign aid. Foreign aid --- has been designed by Chinese government to assist poorer countries, in the context of South-South cooperation. CID - for public goods issues, China accept the double track.

The China’s foreign aid official data "The White Paper of 2014": 14,410 million dollars from 2010 to 2012. $ 4,657.3 million (36.2 percent): creation of small-scale social welfare projects; Technical cooperation and development of human resources, material assistance and humanitarian emergency assistance. 1,046.2 million dollars (8.1 percent) of interest-free loans to build public facilities and other projects to improve the people's living conditions. $ 7.17 billion (55.7 percent) to carry out large and medium-scale manufacturing and infrastructure projects, as well as to supply complete equipment, machinery and electronic products.

Belt and Road Initiative (BRI) One Belt, One Road (OBOR) Economic Belt of the Silk Road and The Route of the Silk Maritime of the XXI Century To Chinese Government, the BRI has become the main platform for international cooperation. This includes more than 60 countries on three continents; Its roads depart from China, pass through Central Asia and reach Africa and Europe. The Maritime Silk Road could connect 20 countries of Asia, Africa, the Middle East and Europe. Construction of major infrastructure works, including ports, railways and highways Financing: $ 40 billion, more AIIB with an initial capital of 100 billion dollars raised from 57 founding members.

BELT AND ROAD INITIATIVE (BRI) In addition, the BRI (OBOR) cooperation scheme does not only support infrastructure projects; But also considers the economic development more comprehensive that include the chains of supply that relate the global markets; For long-term projects such as superhighways and railway lines, China raises the need for numerous technical arrangements (as basic as unifying the width of railway lines), as well as administrative and security arrangements.

BRI and Cooperation Cooperation is a fundamental concept to BRI’s; it gives meaning and unity to the project. In the joint communique of leaders round table (Beijing May,15), the concept is referred 44 times, in the main forms of international cooperation, such as: - Development and cooperation; - Multilateral, Bilateral, North-South, South-South, and Triangular cooperation; - Conectivity cooperation; - Economic, industrial and financial cooperation; - Besides deepen, promoting, strengthen cooperation cooperation.

Financial Support At the recent Belt and Road Forum (The Beijing Miting, May 14-15), Xi Jingping, announced an additional $124 billion in funding for the OBOR initiative, including loans, grants and $8.7 billion in assistance to developing countries. According to Chinese state media, some $1 trillion has already been invested in OBOR, with another several trillion due to be invested over the next decade.

Ongoing BRI projects The effort has already made some practical achievements: - A 260-mile railway to conect eight Asia Countries: $6 billion. The new rail links with Laos and Thailand and high-speed-rail projects in Indonesia. - Building power plants in Pakistan to address chronic electricity shortages: $46 billion worth of investment . - China-Pakistan Economic Corridor (CPEC): 57 billion. This project includes the modernization of Gwandar Port, which offers China a shortest parth to the oil-rich Middle East, Africa and mosto of Westerner hemisphere, besides promising to open up remote landlocked Xinjiang. The Andhra Pradesh State power plant (India): 160 million with AIIB resources.

Ongoing BRI projects - China has signed bilateral cooperation agreements related to the BRI project with Hungary, Mongolia, Russia, Tajikistan, and Turkey. - A number of projects are under way, including a train connection between eastern China and Iran that may be expanded to Europe. - China’s Ningbo Shipping Exchange is collaborating with the Baltic Exchange on a container index of rates between China and the Middle East, the Mediterranean, and Europe. More than 200 enterprises have signed cooperation agreements for projects along BRI’s routes. - Chinese planners are mapping out train lines from Budapest to Belgrade, Serbia, providing another artery for Chinese goods flowing into Europe through a Chinese-owned port in Greece.

Ongoing BRI projects Through these projects China creates new markets for its contruction companies and firms producing industrialized goods, sufering industrialized productive overcapacity. Besides, and no less important,Beijing creates strong diplomatic relationships. The massive infrastructure projects, along with others related to foreign aid projects, are the backbone of the geo-economic and geopolitical Chinese agenda.

Chinese Overseas Foreign Direct Investments According with China’s Ministry of Commerce (MOFCOM), China’s OFDI is mainly concentrated in Asia (largely in Hong Kong), although invest has increased significantly in Latin America and Africa over the past years. The official Chinese statistics only indicates the initial destination of investment. Like many companies from many countries, some Chinese firms initially invest in tax havens or offshore financial centers where there is minimal or not tax, such as Hong Kong o Cayman Islands, Then these companies reinvests this some money in other destinations, such as Africa and Latin America, through their subsidiaries in these offshore

BRI… Latin America Perspective In the face of BRI Chinese project, what could be the options for regions that are not specifically mentioned in this proposal, as is the case in Latin America? In this respect it should be noted that the BRI (OBOR) is not a fixed plan, but is an open and flexible initiative, from which it can be interpreted that projects in any region or country would be able to anchor with the resources available in the Chinese financial institutions. Nowadays, Chinese sources includes a railroad construction in South America, as part of BRI.

BRI… Latin America Perspective The Asian Infrastructure Investment Bank (AIIB), announced to mid May, 2017, its approval to the incorporation of Chile as a member of the entity. Besides Chile, the Bank announced the entry of Bolivia, Bahrain, Cyprus, Greece, Romania and Samoa; bringing the total number of members up to 77.

China-Latin America Trade In 2016, trade relations between China and Latin American countries reached a total value of 216,600 md, a reduction of 8.4% compared with the previous year (China Customs Administration). Exports: 113,900 md. Imports: 102,700 md. Surplus: 11,200 md.

Such as the great powers in other stages of capitalist development, China is currently seeking international leadership based on its economic rise. China’s international cooperation does not follow the criteria of international organizations, as such as the OECD. China, without opposing directly to international practices, is generating its own institutional structure through which can directly allocate its financial and technological resources to the ICD. An example is the BRI. China gives aid, as a support to combat poverty in all its manifestations, but it considers it is not a definitive solution. The Chinese leadership believes that the development must be based on the policies of each country; for this reason, China alludes to its own experience: poverty is an internal issue that China has been solving itself. Conclusions